Network Marketing Success Training- MLM Secrets To Recruiting Small Business Owners

By: Doug Firebaugh

Many Network Marketing distributors overlook for some reason the small business owner and professional. They don't attempt to talk to them about their products and business as many they believe they simply would not be interested. That is no the case with many small business owners. Many are always looking for additional cash flow and ways to create a secondary revenue source.

Small business owners and small business professionals are a Gold Mine in Network Marketing and MLM. They bring to the table many things that the average person does not:

1) They bring A DIFFERENT Perspective to the marketplace and MLM. They understand business, and also how to run one, and have a business attitude when working in the marketplace, not just an employee attitude.

2) They bring EXPERIENCE to the marketplace and MLM that the average person does not have. Experience in running a business, networking, making things happen, and succeeding.

3) They bring DETERMINATION to the marketplace and Network Marketing. They MUST be determined to succeed in their business, and bring the same determination to MLM. Most small business owner and professionals are very FOCUSED on what they are doing, and determined on where they are going.

4) They bring CONTACTS and NETWORKS to the marketplace and MLM. Most business owners belong to state and national associations with other business owners, and thusly, have formed relationships with many other small business owners and professionals, a Gold Mine in MLM.

5) They bring a CREDIBILITY that the average person does not have to the marketplace and MLM. Credibility as an owner, and a professional in the marketplace. This alone is a Gold Mine in Network Marketing.

Business owners and professionals are incredible prospects for MLM, but unfortunately, can be quite difficult to approach, at least from the normal approach of Network Marketers.

How can you then plug into all they can bring to Network Marketing? How can you recruit them, but do it with a very professional approach that they will be curious about, instead of turned off like so many are?

The best way to approach them is in a VERY Professional manner and with a VERY Professional verbiage. You DO NOT approach them like you would your aunt or cousin,or best friend. Many times, with family or friends, we all have a tendency to say too much as we are excited, and want to tell the world about what we are doing.

INFERNO Secret:

The less you say, the more chance you have of getting an appointment, warm market or not.The more professionalism you have, the less negative responses you will get.(CLUE!!!!)

Here are several SCORCHING approaches for the telephone/Face to face for the small business owners.

WARM MARKET:

" Hello Ben? This is Mary, and I need your help on something.I am introducing into the business community a new idea that could really impact revenues for small business owners. I would like your input and insights as to how it could be applied to this community.when do you have 10 minutes?"

"Hello Ben? This is Mary. Listen, I have run across an idea that I believe can increase revenues for many small businesses in our community.it has tremendous value, and I need your help and input as to how to introduce it into our Locale.when do you have 10 minutes?"

" Hello Ben? This is Mary, and do you feel that increasing revenues in your business would be something that we could spend 10 minutes discussing?"

"Hello Ben? This is Mary.I really need your expertise on something.I have run across a way that small business owners can substantially increase their revenues and am looking for the best way to introduce it into the marketplace.when are you available for about 10 minutes?"

"Hello Ben? I need your help on a project I am getting ready to introduce into the business community. You are very well versed in business, and I want to run an idea past you and you give me your thoughts on the value of it as a secondary revenue stream to small business owners."

COLD MARKET:

Calling small business owners cold is not easy, but a great excercise for building your skill set. Here is one way we approached thousands of business owners we did not know on the phone, or especially face to face, which worked well for us:

"Hello. My name is Doug, and like you, I am a Business owner in this community. I am simply introducing myself to folks like yourself, and also an idea that has proven to increase revenues substantially for small business owners like you and me. May I drop in for a 5 minute visit this week to simply introduce myself? I would love to meet you and learn more about your business, and share an idea that has proven to increase profitability with many business owners such as your self."

Also, you can send out a short letter/ email simply saying basically the same thing.

Dear Jamie.

My name is Doug, and like you, I am a small business owner here in the local business community. The reason for the letter, I have found an idea that can help increase revenues for small business owners substantially. I simply would love to meet you, learn a little about your business, and share an idea that has helped me. I will be in touch to see when what day would be convenient.

Professionally Yours.

Doug

Follow uo within a couple of days, and see about scheduling a drop in visit.

These are just a few of the hundreds of ways you can approach small business professionals in MLM and Network Marketing.

blessings...doug

PassionFire Intl (c) 2005/ all rights reserved

About the Author:

Doug Firebaugh is one of the top MLM Network Marketing Trainers in the world. Over a million people a month read his training ezine. He spent the last 7 years traveling the world speaking and training on Success. He lives in Birmingham Michigan, and you can receive a FREE subscription to his training ezine- The MLM Success HEAT- at: http://www.passionfire.com/pf_heat_4.html http://www.passionfire.com

Read more articles by: Doug Firebaugh
Article Source: www.iSnare.com
Permanent Link: http://www.isnare.com/?aid=10044&ca=Marketing

Do You Need Accounting Software For Your Small Business?

By: Jakki Francis

If you’re anything like me then you dislike with a vengeance doing your accounts and taxes.

So how can you make this process easier, less painful and cut your accountancy fees?

Well buying an accounting software package is one way.

First of all you need to decide whether you are going to keep your accounting records manually, that is using pen and paper, or whether you are going to computerize the process.

If you decide that computerizing the process is the way to go then you need to decide whether to buy an accounting software package, for example Sage or Quicken, or whether a spreadsheet, such as Microsoft Excel will suit your needs better.

As a general rule if you are a cash business that just needs to record income and expenditure then you are better off using a spreadsheet.

So, should you choose an accounting software package? Yes if:

· You have customers to whom you extend credit and you buy goods in the same way

· You process in excess of 50 transactions per month

· Your business is an Incorporated Company (Limited Company in the UK)

and

· You are computer literate or are willing to learn!

Before choosing the accounting software, speak to your accountants – they will be familiar with the various accounting software packages on the market and will be able to advise you. Most accountants use software in their office to process the bookkeeping for their clients and will have a working knowledge of the accounting software package they use. It may be cheaper for you to use the same one they do, because they can advise you how to get it up and running and will be on hand to answer questions, plus at your financial year end when your accounts need preparing it will be less expensive, believe me to have a compatible program.

I also recommend doing some research yourself, you may be able to obtain a demonstration disk or download of the most popular accounting software packages and this will give you an idea of how they work and if they are user-friendly.

The cost may also be an issue, so you need to decide on your budget. But consider how your business is likely to expand - you may outgrow that budget accounting software quickly and end up buying the more expensive one anyway.

Accounting software providers may also try and up-sell you a maintenance contract. Save your money! In my experience the established software providers will not have bugs in their systems. They will also try and upgrade you to the next version on a regular basis, but if the software is doing everything you need then there is no need to upgrade.

Of course, you could also pay someone to do your accounts for you, either your accountant or a bookkeeper – the payoff being you don’t have to do it yourself and it frees you up to actually run your business!

Copyright © Jakki Francis,(UK), 2005

About the Author:

This article is copyrighted. Please feel free to use it in it's entirety including copyright information and information about the publisher. Jakki Francis operates the website http://www.accountingsoftware-reviews.com

Read more articles by: Jakki Francis
Article Source: www.iSnare.com
Permanent Link: http://www.isnare.com/?aid=8961&ca=Business

A Look At Small Business Incorporating In Florida

By: Eddie Tobey

The choice to incorporate a small business in Florida has several advantages. Corporations are separate legal entities and, as such, the corporation rather than individual owners pay both the taxes and the liabilities. If you are thinking of running (or are currently running) a small business, incorporating in Florida might be a good idea because you would no longer held personally liable if your business suffered a downturn.

Small business incorporating in Florida also means that you do get to enjoy the perks and incentives that come with running a small business. For example, businesses in the technology sector and certain manufacturing sectors can qualify for grants if they are deemed to be beneficial towards national defense. Additionally, the U.S. Small Business Administration might qualify you for one of its loan programs.

With regard to Florida’s general business climate, the state offers very good tax advantages. For example, Florida does not tax corporate income on subchapter S-corporations and state personal income. There additionally is no corporate franchise tax on capital stock, no state-level property tax assessed, no property tax on business inventories, no property tax on goods-in-transit (up to 180 days), and no sales and use tax on goods manufactured or produced in Florida for export outside the state. In addition, there is no sales tax on purchases of raw materials that are incorporated in a final product for resale, no sales/use tax on boiler fuels, and last but not least, there is no “sales” or “use” tax on co-generation of electricity.

Some specific industries receive additional support in Florida. For example, the Florida Aerospace Finance Corporation (FAFC) is a valuable resource for Florida-based businesses in the aerospace sector. The FAFC was created to expand aerospace business opportunities within the state. This entity promotes Florida as “The Place for Space” by providing direct loans and innovative financing strategies for small aerospace businesses.

These are just a few examples of the business supports in place to help a small business grow in Florida.

About the Author:

Incorporating in Florida helps big and small businesses learn the benefits of incorporating in the Sunshine State, and also provides detailed information and advice about the Florida Department of Incorporation. For more information go to http://www.e-incorporatinginflorida.comand/ or visit its sister site at http://www.e-forexbrokers.com
Read more articles by: Eddie Tobey
Article Source: www.iSnare.com
Permanent Link: http://www.isnare.com/?aid=7030&ca=Business

Can Barter Help Increase Cash Sales And Visability For Your Small Business?

By: Ann Zuccardy

Barter is becoming an increasingly popular method of commerce. The U.S. Department of Commerce estimates that 20 to 25% of world trade is now barter. Corporate barter is now a 20 billion dollar industry. It seems as though everyone from the big corporations on the New York Stock Exchange to small home-based businesses are jumping on the barter bandwagon.

I never thought about barter as a tool for building my businesses. That changed in April when I joined my network in Vermont (http://greenbartervermont.com). For a small membership fee and a small commission on each trade, I now have access to almost 200 (and growing) local merchants' products and services including everything from popular restaurants, to spa services, electricians, hotels, rental cars, landscapers, and yes, even flying or sailing lessons!

How does it work?(Most of the big networks function in this way.)

-When you join the network, you receive a no-interest line of barter credit. Barter credit is similar to the credit line on your credit card. You can use the credit as you please and when you trade your company's goods or services, you receive barter dollars (par with US dollars) credited to your account.
Your business is listed in the network membership directory. The listing provides basic information about your business and buyers contact you directly.

-When someone in the network wants your product or service, you authorize the transaction according to the agreed price and the system keeps track of the details for you. It isn't necessary to purchase goods from the person who purchased from you. Your trade dollars can be used to purchase from any other network members.

-You receive a computer-generated monthly statement showing your barter activity. You pay a small commission based on the amount of barter dollars transacted. Think of it like an interest rate on a credit card only it costs much less and has more benefits.

Benefits include:

-Barter increases new business: Attract customers and referrals who wouldn't have known about your business otherwise. Members of the network are likely to choose you over the competition if there is no outlay of cash. This in turn, will increase your cash sales, simply because your product is gaining exposure and referrals.

-Barter expands your customer base: Expand your market while maintaining your existing cash customer base. Please your barter customers and they are sure to tell other potential customers all about you.

-Barter enhances your lifestyle: Use your barter credit for whatever you want in the network without using credit cards or spending cash. If there is a service or product that does not exist in your network, recruit a business that provides that service. Many barter networks pay you a referral bonus in the form of barter credits if you recruit a business they accept into the network.

How does one choose a barter network?

-Do an Internet search on Google to find a reputable network. The beauty of the Internet is that you don't have to live in the state where the network is administrated.
Talk to the person administrating the network. Make sure he/she answers all your questions to your satisfaction and doesn't try to hard-sell you.

-Make sure all of the conditions are in writing and be sure you understand all network trading rules and limits before you sign or pay anything.

-Check to see what other businesses participate in the network. Are they businesses you respect, admire, and with whom you'll want to do business?

-Tell your friends and other business owners. Spread the word about barter. You'd be surprised at how little people know about this method of conducting business.

-Get involved. Go to meetings or mixers. You get as much out of the experience as you are willing to put into networking. Remember, networking and sales are all about creating relationships.

Barter has created new power for my businesses. I feel good that I am supporting small companies like my own who I may have never met otherwise. Could barter work as part of your marketing plan?

Copyright 2005, Ann Zuccardy, All rights reserved.

About the Author:

Ann Zuccardy is a freelance technical and copy writer with 17 years of industry experience in marketing and technical communication. She currently consults with IBM in Vermont where she writes technical documentation for commercial ventures. Ann is also the owner of Vermont Shortbread Company. She can be reached at http://www.wordbrains.com
Read more articles by: Ann Zuccardy
Article Source: www.iSnare.com
Permanent Link: http://www.isnare.com/?aid=7215&ca=Business

Small Business Debt Collection Law Cheat Sheet

By: Joel Walsh

In your small business debt collection laws will eventually become important, as your debt grows and some clients do not pay.

To collect small business debts legally, you must first send a written notice that collections have begun, within five days of first contacting the debtor for collections (for instance, within five days of calling on the telephone). The letter must include dispute instructions.

Small Business Debt Collection Laws Forbidden Practices

* Collect any amount beyond the actual debt, unless you really can do so legally.

* Continue collections on a debt if the debtor has disputed the debt, unless you provide the debtor with written proof.

* Continue contacting the debtor if within 30 days of first contact, the debtor disputes the debt.

* Credit a payment the debtor has made to a non-disputed debt to a debt the debtor has disputed.

* Deposit a post-dated check before the post-date.

Small Business Debt Collections Laws: What You Can't Say

* Give a false name.

* You are an attorney or government representative, if you are not.

* You have an attorney working for you or that you are going to assign the case to an attorney, if you really do not.

* The debtor has committed a crime, unless you are 100% sure they have.

* You work for a credit bureau, if you really do not.

* The debt is more or less money than it actually is.

* You are sending or have sent legal forms when you really did not.

* You are sending or have sent papers that are not legal forms, if they really are legal forms.

* The debtor will be arrested--no one is arrested for nonpayment of debts anymore.

* You will seize, garnish, attach, or sell the debtor's property or wages, if you do not really intend to or cannot legally do so (and unless the debt is secured with collateral, you probably cannot).

* You will sue or take other legal action, if you do not really intend to, or are not legally able to do so.

Small Business Debt Collection Laws Forbidden Third-Party Disclosures

Never:

* Give any credit-related information that is not 100% accurate.

* Tell anyone other than the debtor that you are collecting a debt.

* Telephone any number other than the debtor's more than once.

Small Business Debt Collection Phone Calls

Never:

* Call after 9 pm or before 8 am.

* Forget to give your name and your company's name.

* Call repeatedly or in a way intended to annoy.

* Make a collect call.

* Make any threats.

* Use profane or obscene language.

* Leave a message that reveals this is a debt collection.

Small Business Debt Collection Mailing

Never send:

* Postcards.

* Envelopes or mailings with any reference to debt collection on the exterior.

* Anything that looks like an official, legal, or government document, if it is not.

Please note this page is not intended to give legal advice and may not be complete or up to date with the most current collection laws changes.

About the Author:

Joel Walsh has written more tips on debt collection law: http://www.debt-collection-laws.com/?%20debt%20collection%20law [Publish this article on your website! Requirement: make live link for above URL/web address with link text/anchor text: "debt collection law" OR leave this bracketed message intact.]

Read more articles by: Joel Walsh
Article Source: www.iSnare.com
Permanent Link: http://www.isnare.com/?aid=6906&ca=Business

Grow Your B2B Small Business Without Marketing

By: Joel Walsh

Summary: Want to grow your business-to-business small business without chasing after new clients? Expand with new value-added services that complement your existing offering. Find out how.

If you have a business-to-business small business, some of your clients inevitably will go out of business, get bought out, undergo management shake-ups, or just get seduced by a new vendor. You have to grow your business just to stay in business. But how?

• Undertake costly and time-consuming marketing and networking projects to get new clients to make up for the inevitable attrition.

• Ask your existing clients to refer new clients. This is always a good idea, but it's not the fastest or most reliable way to get new business. You could wait months to see results.

• Don't get new clients at all. Instead, expand your offerings to your existing clients.

Choosing Your New B2B Small Business Offering: What to Look for

Expanding your B2B offering might sound like a bit of a headache and that is a possibility. You have to select your expanded offering carefully. Here's what to look for:

Complements existing offering

In case you're tempted to branch out too far, keep these factors in mind:

• Market. If your expanded offering complements your existing offering, your existing clients will provide a ready market.

• Credibility. "Jack-of-all-trades, master-of-none:" it's a cliché, but people instinctively believe it. Which would you trust more: a shoemaker who also sells wristwatches or a shoemaker who also sells socks?

• Skills. You will inevitably need new skills for your new offering. This includes the softer skills of selling and servicing the offering. The fewer skills you have to acquire, the smoother your rollout will be.

Modest investment to start

The only guaranteed way of minimizing your risk is to minimize your investment. Remember: investment doesn't just mean money, but also your time and energy. Choose an expanded offering that won't be all-consuming.

Strong existing demand

Face it: your small business already has its hands full with its existing business. You can't afford to break ground on something the world doesn't know about yet. Look for an unfulfilled demand on the part of your existing client base.

Hypothetical Case Study: B2B Service Expansion

Lisa is a virtual assistant who has expanded from data entry to helping her clients organize their internal records. But offshore companies are taking away record-keeping clients just as they did with data entry. Getting new record-keeping clients would be an uphill battle against offshoring.

What does Lisa do?

1. Lisa gets into a few long telephone calls with her favorite clients. One client mentions his secretary is tired of handling payroll. Another says he is fed up with being put on hold with his current big-name payroll processing company.

2. Lisa researches payroll processing outsourcing. She finds it's a business where offshore companies have not made great inroads. Domestic businesses have not glutted the market, either. Traditionally, the technology needed to run a payroll process business was so expensive that only a few large firms could compete. The new software that allows any small business to offer payroll processing services has only been on the market a short time. Meanwhile, the cost of startup is only the cost of the software, plus a portion of her sales. Best of all, the only training she needs is to read up on a few payroll manuals, and do a test run with one or two of her most supportive clients.

3. Lisa gets a few of her clients on the phone and asks them point-blank if they would be interested in outsourcing their payroll processing to her. They sound interested.

4. Lisa finds a reputable payroll processing software company founded by someone with extensive experience in the field. She calls the company up and confirms that they have not sold a franchise in her area yet.

5. Within six months, Lisa has taken over the payroll processing of about one-fifth of her existing clients. Though she has lost two large clients to offshore virtual assistant services, her business income has grown by fifteen percent, since she has gotten more work without having to invest in marketing.

Of course, Lisa's success took hard work. But she was able to maximize her effort by choosing an offering she could expand her business into easily. Payroll processing is one example of a value-added service that many B2B small businesses can transition into smoothly. But whatever new offering you go with, just make sure to choose your new offering carefully.

About the Author:

Joel Walsh recommends you check out this site for expanding your business with payroll outsourcing: http://PayClerk.com/?%20payroll%20outsourcing [Publish this article on your website! Requirement: live link for above URL/web address w/ link text/anchor text: "payroll outsourcing" OR leave this bracketed message intact.]

Read more articles by: Joel Walsh
Article Source: www.iSnare.com
Permanent Link: http://www.isnare.com/?aid=6905&ca=Business

Obstacles To Small Business Usage Of eLearning In Europe

By: Colin Mc Cullough

I would like to start my article with a few economic facts which could lay a background for the message I want to get across.

The political agenda of making Europe the most competitive global economy by 2010 has not been matched by developments over the past five years. Demographics show that Europe will continue to have a shrinking workforce between now and 2020 with older workers forming the core of the European workforce.

Currently 80 million EU citizens are low-skilled. By 2010 it is estimated that half of all additional new jobs on the labour market will require tertiary education and almost 40% upper secondary level. Logically, the job prospects for the low skilled will decline. So we are currently confronted with the situation where half the EU workforce (some 100 people) require upskilling.

This in my view cannot take place in the back to the classroom scenario, Learning and upskilling must be integrated in the workplace.

These unsettling prospects must also be seen in the current European economic structure. Small and medium-sized enterprises are the European Union. They account for 99% of all businesses; they provide employment for 74 million people.

Elearning through the flexibility and facility of access it offers is seen – at least politically – as an important enabler of lifelong learning. However, while we can observe an increase use and impact of elearning in large European companies – up to 60% of the training needs of key players in the ICT sector is now provided by elearning) the uptake in SME’s is at best slow and does not meet initial hopes and expectations.

A recent study carried out by Cedefop and the European Commission shows that elearning has had a limited impact on SME’s in terms of those who use it and what it is used for, The use was almost always limited to managers and ICT based staff. The case studies carried out showed that in five European countries there were a number of factors decisive in influencing the development of ICT for learning in SME’s. The most significant were:

- the total lack of training culture within the SME
- lack of appropriate learning materials
- the attitude of individual managers
- and lack of access to sufficient bandwidth to ensure high quality training.

Broadly speaking and with few exceptions, despite spawning a number of new technology companies and numerous government and European sponsored programme’s the uptake and efficacy of learning using ICT has been less than convincing. The development of learning in Europe has been dominated by the metaphor of the virtual classroom and the virtual university, it has equally been dominated with an obsession with technology and very little attention has been paid to vocational and occupational learning or the development of elearning environments in less formal learning contexts.

Like it or not, research suggests today that most learning takes place in every and work social situations, In other words, most of our learning is informal and takes place in a variety of social contexts. Work is carried out in a social context – this is particularly the case in small and medium-sized enterprises and plays a very important part in people’s lives. If elearning is to make a contribution to changing the traditional learning paradigm – institution based – phase and stage related) it must become embedded in the work organisation.

The use of ICT in the broad sense for learning is considered a major factor in implementing the paradigm of lifelong learning and in providing staff from SME’s in particular with access to continuing vocational education and training.

The main objectives of ICT supported learning should take forward the following objectives:

- it should increase access to learning opportunities through increased flexibility of delivery modes and by overcoming geographical barriers to participation,

- it should enhance the quality of the learning experience in terms of content and teaching

- ultimately it should increase the efficiency of the organisation by reducing costs and increasing productivity.

So what are the obstacles to making elearning happen in SME’s

Firstly I believe that people are ready to learn when they realise that they don’t know something that they need to know in order to accomplish a goal they wanted to approach. Thus there is little use in a philosophy of one size fits all, To date most elearning has been an attempt to put books on computers interrupted by a multiple choice test, The advocates of elearning have not spent time trying to understand how the new medium changes the educational experience. They are simply trying to replicate what is there now while leaving out some of the important parts such as the teacher. The value of a computer may seem at first to be its ability to deliver information anytime anywhere but its value in education is much more important. When the air flight simulator was invented what was important was not the fact that it could be used in any remote location. It enabled pilots to learn to fly without risk and to accumulate the experience but not be harmed by it

Today, to give another example, most university courses are lecture courses. Lectures are evidence of the inertia that exists in education and still reflects ancient educational considerations. ELearning needs to be about learning by doing, also using the computer to evoke simulated experience. One should learn to run a business by running it rather than reading or hearing about how to do it.

The emphasis in the elearning industry has changed somewhat over the past five years from a technological to a pedagogical perspective.

So first and foremost there must be a broader understanding of what elearning really is and that it impacts largely on how, where, what and how the learner progresses.

Secondly, I would return to the issue of the learning culture. What is the motivation of the learner in the SME. Are their incentives – tangible or intangible for improving his/her competences. ELearning cannot be removed from the whole debate of the learning organisation, of managing human capital and recognising the assets of the company are largely in the heads of its employees. Workplaces need to be designed to facilitate learning and learning infrastructures. This requires examination of what forms of work organisation are needed to support elearning in SME’s and how skills gained from formal and informal learning activities can be applied in the workplace. In this domain current research is weak.

The third issue I would touch upon is the question of pedagogies and learning cultures. Work is still outstanding in defining and analysing the training and learning needs of SME’s and of its managers and employees. In an elearning context there is a need to develop effective pedagogies, materials and eresources,

Fourthly the issue of elearning materials and infrastructures. We need a much broader understanding of how electronic media and applications can be used to support elearning. This should go hand in hand with an audit of what elearning materials are actually available to SME’s, how does it fit their real learning needs. This would led me on to the issue of localisation of software but that I shall leave aside for the present.

Point number five. That elearning is a cheap learning solution is a myth. On average US estimates put costs of one hour elearning instructional material at 20 000 dollars – in some cases as high as 80 000 dollars. If materials can not be recycled, if learning materials cannot be adapted to specific learning environments, it learning materials have not complied with technical standards, then there use is limited and the return on investment non-existent.

And perhaps the last point I wish to make. What about the models and frameworks to support elearning in SME’s. There are growing national and regional initiatives, and here I would point to Scotland as one outstanding example for networking and support to the SME looking for elearning opportunities. For SME’s I believe in terms of financial resources, the most convincing model is one based on learning regions and partnerships.

The issue of open standards is essential it elearning is to be a feasible investment = particularly for SME’s. Similarly there is a need for a lifecycle model of learning content covering all aspects of content from creation to delivery storage and retrieval.

The issue of the changing role of the trainer or educator is equally important. They potentially play the key role as change agents. Their continuous professional development is essential and work we have carried out at Cedefop shows that there is major concern among teachers and trainers that they are not equipped to support technology in the learning environment

To conclude, I think I have tried to advocate the view that the issue of how a culture of lifelong learning should be developed and supported in SME’s is a complex one. It is unsure to me if present national and European policies promote access to continuing learning as a pubic right or. a private good, What is the balance between the responsibilities of the public and private sectors regarding elearning. And this raises the vital question of funding. Already there are substantial differences in access to lifelong learning and elearning for different occupational and social groups. This in turn raises the issue of social exclusion.

I am afraid that my article raises more questions that provides answers to the issues of elearning in SME’s. But if such issues are not addressed at all levels – European, national and regional, the promise of elearning as a driver of economic growth and performance in Europe could easily turn into a myth.

About the Author:

Colin McCullough works at a European level for increasing awareness of technology supported learnng. He has consulted for a number of companies including http://www.modusvivendi-design.com

Read more articles by: Colin Mc Cullough
Article Source: www.iSnare.com
Permanent Link: http://www.isnare.com/?aid=6826&ca=Business

Small Business Collection Agencies Get You Paid

By: Joel Walsh

If you're like many small business owners, the mountain of debt you accumulated during startup might have been enough to make you worry about collection agencies every time you answered the phone. But your feelings toward collection agencies are eventually going to change, if they haven’t already.

Small Business Collection Agency Services: More Benefits than Costs

Small business collection agency services will certainly cost more than just writing letters demanding your money back. But the amount of money you’ll collect, not to mention the time you’ll save, will more than pay it back. In fact, when you consider the hourly rate of your employees, or you yourself, collection agencies’ fees really can be quite a bargain.

Let’s say you have an assistant your business pays $10/hour, effectively costing your business $15/hour once you count in employment taxes, benefits, and the overhead of your office. You would be lucky if that assistant spent just five hours total on each debt, and managed to collect half of them.

But you would have sunk $150 into each successful collection. Plus, there’s the opportunity cost: $150 worth of time you haven’t spent in growing your business. So the net loss is $300, and probably more if you’re a profitable business that gets a good return on your people’s time.

But if you refer your delinquent debts to a collection agency for $75 each, and they collect three-quarters of them, you’ve invested only $100 per debt collected. Once you factor in all the money from all the debts the agency collected for you that you couldn’t have collected on your own, the return on investment is huge. That’s not even counting the saved opportunity cost, or all the stress you’ll save yourself and your associates.

In the end, your small business has to focus on doing what brings in the money: your core business. Leave your taxes to your accountant, your office repairs to your building manager, and your collections to your small business collection agency.

About the Author:

Joel Walsh writes for Collection Agency Information:http://www.collection-agency-information.com?%20collection%20agency [Web publication requirement: create live link for the URL/web address with "collection agency" as visible link text/anchor text; if offering for re-publication (article bank, aggregator, or clearinghouse), no link text required.]

Read more articles by: Joel Walsh
Article Source: www.iSnare.com
Permanent Link: http://www.isnare.com/?aid=6299&ca=Business

Starting Small Business Promotional Campaigns

By: Joy Gendusa

So you’re starting a small business. You figured out what you wanted to sell or do and went out and got it all set up, had your DBA framed and on the wall and now all you need is for someone to buy your product or use your service. Right?
How are you going to go about getting your public to know you even exist?

Promote! Promote! Promote!

Well that all sounds simple, but say you’re a financial specialist, a boat builder or llama farmer. They probably didn’t teach the basic principles of starting small business promotional campaigns in boat-builders’ school. So what do you need to know, and how do you go about it?

Let’s start with the “Basic Principles” of promotion:

What is Promotion?

Promotion (pru•mō′•shun) n. Anything, as advertising, public appearances, etc., done to publicize (get the attention or interest of the public) a person, product, event, etc. The New Webster’s Concise Dictionary2003 Encyclopedic Edition
Why do you promote?

The purpose of promotion is to make sure people know you are in business. You promote because if you don’t, you won’t make it in business. You promote because it is communication that you need to engage in in order to survive. You promote in order to expand and get the attention or interest of the public for your products or services. You promote because if you don’t, no one will know you exist and no one will buy from you and…well, you get the point.

How do you promote?

There are more ways than you would ever think. Have you ever heard someone say, “I never promote and I am always busy” OR “I don’t have to promote, all my business comes from word-of-mouth”? They may not be aware of how they’re doing it, but I promise you they are promoting somewhere. Maybe they just go around telling everyone they talk to, that they don’t promote. (Sound funny? It’s still promoting.) Maybe their larger-than-life running water faucet in front of their store attracts so much attention that they don’t need to do anything else. Well here are some ideas you can do “knowingly” to drive in the business.

• Greeting your customers with a smile is a great place to start.

• Calling your customers after they have had a chance to use your product is a good way to promote that you care about their experience with your organization. It can also create an opportunity to make more sales.

• A neatly packaged product, the shipping label on straight, promotes that you take pride in what you do.

• Always keep up-to-date brochures or catalogs about your business in your reception area for people to see and take with them.

• If you have customers coming into your business, make sure they are greeted pleasantly, professionally, and immediately.

Anything that gets the attention or interest of the public for the company, its employees, its products or services (in a positive way) is promotion.

But how do you go about promoting to the masses?

Here is a story that could save you thousands of marketing and promotional dollars, as well as months or years of experience.
“I was working as the Communications & Promotional Director in a medium size business. We were fortunate enough to have our own commercial printing press, that put out lots of very fancy letters, catalogs, brochures and other promotional items, and oh yes, envelopes to put them in. My full time pressman and his helpers, spent several days each week getting everything printed, cut, folded and sent over to the mailing house.
“There, they had machines that automated all the stuffing, sorting, addressing and stamping. All in all everything was going very well. We were sending out about 40,000 pieces per week at a cost of about $10,800.00, and getting around 120 to 140 good leads per week. This generated an average of 2 new sales per week for a product that cost around $12,000, and re-sign income of around $45,000 more. We weren’t growing very fast, but we were making money.

“THEN…911 hit.

“Suddenly, nobody wanted to open envelopes. Our leads were dropping to nothing. We were heading toward our own disaster like so many other companies did. I knew I needed to promote, but what good did it do if nobody read it!

“I was talking to the owner of the mailing house and he suggested the use of POSTCARDS instead of letters. So we decided to give it a try. Unfortunately, I had much less money to allocate towards promotion, so I started by sending about 20,000 postcards weekly. The total cost-per-piece, needing only one day on the presses, half the labor at the mail house and a substantial decrease in postage, was reduced by about 60%.”

What was the result? Try 120 to 140 leads per week!
Why?

• You don't have to open a post card!

• You see it right away, the bright picture is not hidden from view by an envelope.

• The message leaps right out and you can't ignore it or throw it in the trash unopened (the fate of many bulk mail pieces).

Postcards are the best medium to reach new customers when starting a small business promotional campaign.

About the Author:

Joy Gendusa founded PostcardMania in 1998, her only assets a computer and a phone. By 2004 the company did $9 million in sales and employed over 60 people. She attributes her explosive growth to her ability to choose incredible staff and her innate marketing savvy. Visit http://www.postcardmania.com

Read more articles by: Joy Gendusa
Article Source: www.iSnare.com
Permanent Link: http://www.isnare.com/?aid=6392&ca=Marketing

Affordable Small Business Web Design - 5 Tips

By: Andy Doan

When creating an affordable Web site for your small business, there are certain things to keep in mind from a design perspective that can make or break your site. Even if you do not plan to spend a fortune on your site, paying attention to each of these items you will ensure that the final product is something of which you can be proud.

Here are 5 tips for designing your small business Web site, even on a budget:

Tip #1: Make sure your Web site loads in 5 seconds or less: Have you ever tried to view a Web site only to find that it takes 10 or 20 seconds to come up on your screen? Unless it has been recommended by a friend or you have some other burning desire to visit the site, you probably likely gave up and moved on. The first 5 seconds is very important in terms of the attention span of your visitor. During that period, you need your site to load and for the visitor to be able to "get" what your site is about. If it takes longer than this, your visitors will run out of patience and leave. Tip: if you want to show off a long flash presentation, try featuring it on a page other than the home page.

Tip #2: Limit the menu bar to 5 options: Your Web site needs to be singular in purpose and focused in appearance. If your site is trying to be all things to all people, it will end up being of value to almost nobody. The simplicity and focus of your site design is reflected in your navigation and symbolized on your home page by your menu options. If you believe your site requires more than five menu options, make some of them sub-menus that are available only after the user selects one of the five main options.

Tip #3: Make clearly visible a call to action: Ever shopped at an IKEA? Their stores have a non-traditional layout that allows you to look around freely and yet literally leads you from one section to another, right on through to the multiple cash registers and food goodies waiting for you at the end of your path. Let this serve as a model for how to set up your Web site: on every page, you need to make it abundantly clear to your site visitors just exactly what it is you want them to do. Do you want them to contact you? Order your product or service? Add a comment to your Web site? Whatever it is, make this call to action very easy to spot both textually and graphically from anywhere on the site.

Tip #4: Provide free and clear access to additional help options: You do not want to lose sales (or visits, or whatever your goal for your visitors maybe be) just because you failed to give someone the chance to ask a question. Just as with your call to action, make it clear to visitors that no matter where they are on your site they can easily locate help via phone, e-mail, live chat, call back, user forum, or knowledge database. Hint: present the various options in a prioritized manner depending upon anticipated user needs.

Tip #5: Show consistency among other design elements: The look-and-feel of your site as a whole is really just a combination of all of its individual components. Pay close attention to every detailed component of your new site. Use appropriate colors and graphics, pay attention to font size, make sure your messaging is readable and makes sense, and make sure images look crisp and appealing. Items that you think are minor might form the basis for whether someone chooses to stay on your site or find that of a competitor.

Whether you are designing your own site or hiring a professional designer, pay attention to these items and you will have a winning site for your small business, even on a budget.

About the Author:

Andy Doan of iConvex has been saving small businesses from Web site grief for over 6 years. Get your free, no-hassle quote at www.iConvex.com (First time customers: mention coupon code AT0045 to get a 10% discount).

Read more articles by: Andy Doan
Article Source: www.iSnare.com
Permanent Link: http://www.isnare.com/?aid=190422&ca=Computers+and+Technology

Small Business Debt Collections Law Trap

By: Joel Walsh

When someone owes your small business money, you certainly feel like a victim. But did you know that if you aren't careful, you could break the law by trying to get the money back?

How to Break a Federal Debt Collection Law

You have a small business, and your bills are coming due soon. You could easily pay those bills if a few thousands dollars of overdue invoices were paid. It's time to give your clients a few friendly reminders…

1. You call up the biggest debtor at his home number. The debtor's girlfriend answers and you leave the message that you were just calling to remind her husband about the invoice you had sent last month.

2. You get into an argument over the phone with the next debtor. In the heat of the moment, you say you're referring the debt to you attorney--when in reality, you know you can't afford to do that.

3. It's getting late--in fact, it's already after 9pm. But you know that debtor number 3 tends to stay up quite late, so it's practically midday for him. So, you cheerfully give him a call and remind him about the invoice of a couple of months ago.

Congratulations, you may have just broken a federal law three separate times. Plus, you could be sued for it.

Collections Laws Finer Points

Have you figured out what collections law you broke yet? It's the Fair Debt Collections Practice Act (FDCPA), the federal law for collections. Meant to protect consumers from harassment, it has a clear list of things you can't do. Let's look at what you did wrong in the last example:

1. Never tell someone other than the debtor that you are calling about a bill. You can, of course, leave a message that you called. You can even call someone simply to find out if they know if a hard-to-reach debtor has moved house. But you cannot under any circumstances let on that they owe money. Simply leave your name and phone number as with any other "call me back" telephone message.

2. Never claim to be involving an attorney when you are not. Of course, this might seem like a soft area of the law, since intentions are fuzzy. But, for instance, if it's clear that suing to recover the debt would cost as much as the debt itself, your bluff will be obvious in retrospect. To be on the safe side, don't ever claim to have involved your lawyer.

3. Never call before 8 am or after 9 pm, unless you have the explicit permission of the debtor. But unless that permission is in writing, you're safer not calling during those hours, anyway.

Unfortunately, not every aspect of the law is as straightforward as this case. For instance, the law is only supposed to apply to consumer collections, not business collections. But with home business and telecommuting blurring the line between work and home, you're better off following the law's dictates in every case.

Plus, the law has numerous other protections for debtors--or traps for collectors, depending on your point of view.

Feeling daunted? Before you give up on ever seeing your money again, consider outsourcing your over-aged accounts receivables to a professional collections service. After all, there's no law saying you should let customers rob you.

Please note this article is not intended to give legal advice and may not be complete or up to date with the most current collection laws changes

About the Author:

Joel Walsh has written more tips on debt collection laws: http://www.debt-collection-laws.com/?%20debt%20collection%20laws [Web publication requirement: create live link for the URL/web address using "debt collection laws" as visible link text/anchor text; EXCEPT if redistributing (article bank, aggregator, or clearinghouse), anchor text optional.] Read more articles by: Joel Walsh
Article Source: www.iSnare.com

Small Business Debt Collection Letter Writing

By: Joel Walsh

Writing a debt collection letter is one of the most important skills of any small business owner. Do you have what it takes to get the money you’ve earned?

I have a confession: I'm a business writer who's let clients get away with not paying me--a huge sign of failure of my writing abilities. You see, I never learned one of the most important writing skills for any self-employed person or small business owner: how to write a debt collection letter.

Debt collection letters--an overview

"Debt collection letter" in the singular may be an oxymoron, since unfortunately, one is rarely enough. You should have a series of letters to send to deadbeat clients, each one becoming a little more insistent. Here are some ideas for a five-letter series.

1. Don’t make your first letter look like a collection letter at all. Make it a friendly note. You’re more likely to get money from someone who thinks of you as a partner than a dun.

2. If that first letter doesn’t get a response--and usually it won’t--send another the next week that’s more urgent and directly asks for the money. Express your concern that you have not been able to contact the client. Ask if he or she is all right, and if he or she is having any trouble paying.

3. The next week, if you still have not gotten a response, send a letter referring to the payment terms in the agreement you and the client originally made (you did have some kind of written agreement, even if it was just on the back of your invoice, right?). Mention the effect this nonpayment is having on your cash flow, and that your business’s cash flow is just as important as theirs.

4. Still no response by the next week? State plainly that you are asking for the money for the final time before referring it to collections. Include a copy of the entire agreement between you and the client.

5. If you still have not heard back from the client, and are confident that you do not simply have a problem with their contact information, call a collection agency—in fact, you may have wanted to have gotten a collection agency from step one (more on that below).

More Tips for Successful Debt Collections

Tip: Don’t wait to start asking for your money.

If it’s been a week since the payment deadline passed, it’s been a week too long. Send out that first “reminder” letter today. Don’t hesitate to send these letters as little as a week apart from each other. The longer your bill goes unpaid, the less likely it is you will ever see that money again.

Tip: If you’ve been sending email, try sending paper.

For whatever reason, there are people who take a paper letter more seriously. There’s also the real chance that your emails really are not getting through reliably, or are ending up at the bottom of an overflowing Inbox.

If you do send email, make sure it’s digitally signed. A digital signature proves that you sent the email to the specific recipient. In fact, you might want to make sure all your emails to clients and prospects are digitally signed, to have solid documentation of everything you said, and everything they owe.

Unlike with regular emails, the date, time, “to” and “from” fields can’t be forged, so the email has legal standing, even more than certified mail. While web-based email programs cannot send digitally signed email, there are third-party services that will let you send hundreds of digitally signed emails from a desktop email program for only a few dollars a month.

Tip: Follow up your debt collection letter with a telephone call.

As any collection agency will tell you, telephone calls are useful if your debtor has ignored the collection letters. But with caller ID, Caller Blocking and voice mail - if people don't want to take your calls it is hard to reach them. This technique could be especially effective in the case of someone with whom you know will answer their own phone.

Of course, your writing skills won’t go to waste: you need to make sure you have scripted what you want to say. You should take the same attitude and touch on the same points as your letter. Whatever you do, don’t let yourself get sidetracked, and don’t be embarrassed. They’re the ones who are putting you out.

Don’t know your deadbeat’s telephone number? Try looking up the “Whois” record of the business’s website, which usually has the owner’s telephone number.

Does all this sound like too much work?

If you’d rather be writing proposals than collection letters, there are small business collection agencies that will take on debts for as little as $20 each. After all, your client had enough sense to go to you rather than doing your specialty themselves. Shouldn’t you have as much sense when it comes to your debt collection letters?

About the Author:

Joel Walsh is a regular contributor collection-agency-information.com Read all his articles on small business debt collection: http://collection-agency-information.com [Web publication requirement: use "small business debt collection" as anchor text/visible link text for http://collection-agency-information.com]
Read more articles by: Joel Walsh
Article Source: www.iSnare.com

Small Business Outsourcing: An Introduction

By: Ben Botes

Outsourcing is the delegation of a business process to an external service provider. The service provider will then be responsible for the day-to-day running and maintenance of the delegated process.

Before outsourcing an IT function, look at your firm's own goals and culture. Price might be a key consideration, but a valuable outsourcing firm is more a business partner than a service provider. Such a partner should lend a level of expertise to your small business that builds upon internal know-how. Only then can you rest assured that you have achieved an optimum blend of in-house and outsourced IT functions.

Step 1
Do you really need to outsource?

Before outsourcing an IT function, look at your firm's own goals and culture. What business objectives are you trying to accomplish by outsourcing this particular function? How will sending this function to an outside party impact the workflow within the company? Clear answers to these questions can help guide a business owner toward the most appropriate vendor.

Consider the advantages and disadvantages of outsourcing before you make your decision.

Advantages:
- Allows a business to focus on core activities
- Streamlines a business' operations
- Gives you access to professional capabilities
- Shares the risk · Piece of mind that the process is in good hands (reliability)
- Do not have to worry about continually introducing new technologies
- Improves service quality
- Frees up human resources
- Frees up cash flow
- Increases the control of your business
- Makes the business more flexible to change (i.e. demand)

Disadvantages:
- The fear of the service provider ceasing to trade (bankruptcy, etc)
- You may lose control of the process
- Creates potential redundancies
- Other companies may also be using the service provider. Therefore in some cases, the best interests of the service provider may be diluted with other users
- You may lose focus of the customer and concentrate on the product (the outsourced process)
- The loss of talent generated internally
- Employees may react badly to outsourcing and consequently their quality of work may suffer.

Step 2
Buy the expertise:

A valuable outsource partner will do more than lighten the load. Such a partner will lend expertise to ensure an optimum blend of in-house and outsourced functions. In the case of network management, for instance, an outsourcer should "provide a small business with an operational, tactical and strategic view of their network environment,

This allows for quality recommendations to ensure network availability, reduction of total cost of ownership, optimization of network assets for meeting business needs, and support of future growth.

Step 3
Know who you are outsourcing to.

The two most important factors in a successful outsourcing relationship are trust and security - without these the relationship is destined for failure. It is therefore important that you take the time and effort required to find the perfect partner.

Make sure your service provider is keeping current. "IT is very dynamic, so it can be difficult to intelligently know what's happening in IT," said Jeremy F. Shapiro, professor emeritus of operations research and management at MIT. The best vendors can provide not just services, but also "state-of-the-art knowledge about IT needs and developments."

Does this vendor value its employees? What is the average length of employment of the staff? A company that retains its employees must treat them well and value them.

Meet the team: Before signing anything, meet the people who will actually service your account. Good outsourcers will have a dedicated team servicing the customer, led by the controller who acts as the 'go to' person. Chain of command: Along these same lines, know who is talking to whom. The last thing that you can afford to have are layers of contacts, especially when time means money. Finding a provider or consultant that provides one point of contact and even better, one person, is any business' best bet. The language barrier: Finally, it's important to remember that even an outsourced IT function does not go away entirely. In most instances the small-business owner still will have to maintain some involvement. Look for an expert who can clearly explain answers in non-technical terms and can make tech-talk clear to even novice questioners.

Step 4
Know what you are buying

As you get closer to making a decision, it is important to agree upon a set of service level expectations or objectives," said Hoyer. "Measurement objectives can include streamlined operations, cost savings, and reporting with all activities pointing to an improved bottom line," he added. What matters most is to agree in advance on the service to be delivered and especially on the measures that will be used to determine satisfactory performance.

Many of the disadvantages of outsourcing can be avoided if you research the service provider and you do not regard outsourcing simply as a money saving scheme - this is not always the case. Consequently, you should be certain that you have a valid reason for outsourcing and that you intend to liaise regularly with the service provider to avoid loosing all control of the process.

About the Author:

Learn more at http://www.my1stbusiness.com Ben Botes MSc. MBA, is an Entrepreneur, Speaker, Writer, Coach and academic. He is the founder of My1stBusiness.com. Join the My1stbusiness.com Reseller Program and earn 40% referral commission http://www.my1stbusiness.com/affiliate Read Ben's Blog at http://www.my1stbusiness.com/weblog

Read more articles by: Ben Botes

Article Source: www.iSnare.com

Small Business Pricing: Setting A Price For Your Product / Service

By: Ben Botes

The importance of pricing can not be underestimated as incorrect pricing can often result in the failure of a business. New businesses often make the mistake of either charging too little or too much for their product or service. So to help you avoid making one of these mistakes, the following section will outline some of the guiding principles of price determination. Price is a key part of marketing. Setting prices is called pricing.

Pricing means more than how much you charge. Smart customers look beyond pricing when considering a purchase. Price is important but so are delivery times, guarantees, customer support and quality to name a few.

Small and home based businesses can - in many cases - do a better job than "big businesses" in some of these areas. You should evaluate your pricing based on this fact. You're small and don't have the inertia or paperwork logjams of a bigger business. You're quick on your feet and can change direction easily and quickly.

How do I get started on pricing a product/service? There are 4 steps here suggested by us. This module may not serve all types of businesses so if you are not sure consult as many sources as possible

Step 1
Do your homework

You cannot determine prices based only on costs and desired profit margins. First step is to do a little research to get some "real world" pricing guidelines. You don't need a high priced marketing firm to help. Remember, you know your business better than any consultant. Refer to the micro module on Market Research or follow the following pointers on finding out what your competitors and other businesses are doing regarding price. Once again there is no substitute for getting out into the field and doing the research yourself.

Locate a trade association, organization or networking group whose specialty is your service. If none exists, find an association with a similar product. In general, associations can tell you the high-low and average prices charged by members. You can find some organizations listed at our Free for al links or at any local business advice center.

Trade/Business Journals and newspapers contain articles that may include prices. At least once a year, I see an article about my industry online or in a periodical that contains industry fees.

Ask your accountant or Coach for some ideas; after all, they deal with business owners all the time.

There are many career and employee guides that provide industry or job related prices. Consult any industry specific control or accreditation body.

Obtain the cost of raw materials and supplies necessary for your product. Surely you want to charge more than it's costing you for the items!

Many business owners place a pricing structure on their websites. Using the industry name, plus the word "rate" or "fees", you can find those sites on the Internet.

Determine your hourly rate. What is your time worth?

Call similar businesses, outside your local area, for their prices. If you're not their competition, you have a better chance to be told the score.

Visit stores that sell the product you're interested in selling to determine their pricing system.

Ask everyone you know "if" and "what" they will pay for "x". Ask prospective clients what they would pay for your product or service.

Step 2
Determine Your Pricing Objective - What do you hope to achieve?

There are 3 ways to find the appropriate level for you and your product.

Base Price -- The lowest price or rate you must charge to cover your cost including, cost of living and keeping your knowledge and skills up to date.

Base Price is one of your pricing objectives. It's a very important one. This is the one figure you need know so you can keep your doors open. This is your break even point. The absolute minimum needed.

Chargeable Time is the maximum number of working days/hours in a given year. This is the one figure most business owners never consider. It is the number one reason why you end up working long hours and long weeks for your business.

Now divide your cost or Base Price by the number of days from your chargeable time figure. This gives you your daily income benchmark. The amount you need to be making per day from your products or service rates.

Be careful about lowering prices just to meet or beat the competition. There are, however, some good reasons to lower prices:

A strategy to increase market share.
Promote a new product or service.
Attract attention to a over stocked product.
Encourage high volume purchases.
Increase seasonal business (Christmas sale, etc)

Realistic Price -- Substantially higher than Base Price. Top of the quality range in your field but still competitive while offering good value and service to your customers.

Sometimes you have to increase prices in order to cover, for example, increased cost of materials, labor, etc. When an increase is necessary ease the pain for your customers by considering the following:

Notify your existing customers of the increase and, if possible, give them an opportunity to purchase at the existing prices.

Try and advertise the increase along with "new and improved" products or services.

Give the customer something in return for the increased costs. For example, free shipping with orders above a certain value. If possible, delay the increase for existing customers.

Premium Price -- You position your product for the "elite group" and go after the client who wants and can afford the best.

Daily Income Benchmark -- How Much Per Day You Need To Make.
How do you determine daily amount? You need two figures... Base Price and Chargeable Time.

Step 3
Consider some key pricing strategies

Pricing to the Market
Compare prices with your competitors for similar products and services. Set the price range that customers will expect. You can use that market price range--what is acceptable to the market--as a guide to set your prices. Businesses or people to whom you sell may also price to the market by telling you what they will pay for your product or service. As you keep records of actual costs, the cost approach to pricing will help you make sure all your costs are covered, which may not be true in a market approach to pricing.

NOTE: Be careful about underpricing in order to compete or make sales. Use competitor's prices to establish the price range for similar products or services but don't underprice; if your true costs are higher, your final prices will have to be higher.

Cost Approach to Pricing
Price must cover all costs of goods/services sold, including production costs of supplies, materials, fixed overhead, and time/labour, plus a profit. Costs should include costs of production, labour and non-labour, including overhead or fixed costs as well as supplies and materials.
Use this simple formula in setting a price (per unit):

Total Costs of Production Per Unit + Desired Dollar Profit Per Unit
Businesses can set different profit rates, for example 15% profit on supplies and materials, 20% profit on labour/time, and 25% profit on overhead. These more complicated approaches to pricing usually emerge in response to the special needs of a particular business.

If your research reveals that similar products or services are available on the market at a cost much lower than what you could offer, you may have to either adjust your profit margin, the return you expect, or decide to provide enough specialized service or selection that the market will pay the extra. Alternatively, you may be forced to conclude that you cannot afford to make this item or provide this service and look for something else to do.

NOTE: Remember to cost materials at the level it costs to replace them - NOT at original prices; include salaries as a business expense; include interest in your business cost calculations -- interest that could have been accrued had the money used in the company been invested elsewhere (i.e. a bank); make allowances for future refunds, servicing, bad debts, amortization of capital costs of equipment or machinery.

Calculating actual costs is the only proven way to make sure your prices cover your costs. Labour/time charges are to be covered partly in the costs of production and partly as a salary in the fixed/operating or overhead costs. In summary, key points to consider in setting prices are: marketing strategy and your immediate goals competitors' prices, and the market demand for the product and consumer buying trends need to cover costs and provide an adequate profit.

Step 4
Price your product and review regularly

Don't guess or do your pricing on a whim. Take time and go through the process and you'll be on the right track to a more successful and profitable business.

The biggest mistake small businesses make concerning pricing is not reassessing pricing on a regular basis. The marketplace is constantly changing making it mandatory you keep a close watch on your pricing. Raise or lower prices as necessary keeping the above suggestions in mind.

Whatever route you choose, even a small increase in price can have a big positive effect on the bottom line–especially if you’re a high volume producer, notes co-authors Dolan and Simon. If Coca-Cola raised its prices 1% across the board, the company’s bottom line would rise by 6.4%, they write.

Remember that you can always increase your price.

About the Author:

Learn more at http://www.my1stbusiness.com Ben Botes MSc. MBA, is an Entrepreneur, Speaker, Writer, Coach and academic. He is the founder of My1stBusiness.com. Join the My1stbusiness.com Reseller Program and earn 40% referral commission http://www.my1stbusiness.com/affiliate Read Ben's Blog at http://www.my1stbusiness.com/weblog

Read more articles by: Ben Botes

Article Source: www.iSnare.com

Small Business Marketing: Overtaking Your Competitors

By: Ben Botes

Few businesses keep tabs on competitors, yet such knowledge can give you a distinctive competitive edge. Building a file on them, looking at everything from the customer’s viewpoint and asking suppliers and employees what they know about them can be worthwhile. Keeping a jump ahead of the competition means knowing precisely what they are up to. Here are some tips to help you stay one, if not several, leaps ahead.

Step 1
Get clear on your marketing mix

You will often here someone on the website refer to the marketing mix. This refers to the five P's of marketing. Product, Place, Price, Promotion and People. Any business who combines the 5 P's effectively will be successful.

Who is Your Customer?
In order to tailor your marketing and advertising strategies to appeal to the tastes and interests of your market, you must first identify your customer. In order to do this, you it is necessary to conduct thorough research of the consumer marketplace. Keep in mind, the more information you have about your target market, the better able you will be to develop a successful marketing plan.

A market profile typically uses primary and secondary sources to answer key questions about a potential market. A profile is a picture or an outline. Information that makes up the social profiles of the people in your target market is called demographic information, and includes: age, usually given in a range (20-35 years) sex marriage/partner status location of household family size and description income, especially disposable income (money available to spend) education level, usually to last level completed occupation interests, purchasing profile (what are consumers known to want?) cultural, ethnic, racial background

A clothing manufacturer may consider a number of possible target markets--toddlers, athletes, grandparents (for grandchildren), teenagers, and tourists. A general profile of each of these possible markets will reveal which ones are more realistic, pose less risk, and which are more likely to show a profit. A test market survey of the most likely market groups, or those who buy for them, such as parents for babies and toddlers, can help you separate real target markets from unlikely possibilities.

The Right Product
What are your customer's needs? What do they expect to get when they buy your product or use your service? The right product is the one that best fits their requirements. People who eat in restaurants want more than a good meal. They might expect quick service, a reasonable price, a vegetarian menu, a children's menu, entertainment, a drive through window, or to be identified with a trendy crowd. It becomes a difficult and probably an unprofitable venture trying to satisfy everyone's needs.

If you have identified your customer and listed their expectations, you can design your product or service around their requirements.

The more you fulfil your customer's expectations, the better the quality of your product. Think of your product or service as more than just what the customers pays for. When you are planning your business consider how the whole transaction meets the customer's needs.

It is important to note that developing the product or service COMES AFTER you have identified the customer and their need. If you have an idea you think might be worth pursuing, develop the concept only when you have determined a genuine need and interest in the product.

Then let the market help you develop it and strengthen it. Most small businesses fail because the market was not enthusiastic about their idea and the entrepreneur was too vested to listen to the market early in the process.

Positioning your Business
Positioning refers to the image customers have of your business. The goal is to create a business image that enables you to position your business in such a way that, in essence, it acts as a natural magnet for your intended customers. A number of factors that customers often look for include:

price (i.e. cheapest price, fair price, price for quality, etc.)
assortment
parking
service
sales personnel
quality
fashion
convenience
location
atmosphere

Your overall position should emphasize those areas that your customers value most, and those which make you different from your competition. Pricing Techniques The importance of pricing can not be underestimated as incorrect pricing can often result in the failure of a business. New businesses often make the mistake of either charging too little or too much for their product or service. So to help you avoid making one of these mistakes, the following section will outline some of the guiding principles of price determination. Price is a key part of marketing. Setting prices is called pricing.

Pricing to the Market
Compare prices with your competitors for similar products and services. Set the price range that customers will expect. You can use that market price range--what is acceptable to the market--as a guide to set your prices. Businesses or people to whom you sell may also price to the market by telling you what they will pay for your product or service. As you keep records of actual costs, the cost approach to pricing will help you make sure all your costs are covered, which may not be true in a market approach to pricing.

NOTE: Be careful about under pricing in order to compete or make sales. Use competitor's prices to establish the price range for similar products or services but don't under price; if your true costs are higher, your final prices will have to be higher.

Cost Approach to Pricing
Price must cover all costs of goods/services sold, including production costs of supplies, materials, fixed overhead, and time/labour, plus a profit. Costs should include costs of production, labour and non-labour, including overhead or fixed costs as well as supplies and materials. Use this simple formula in setting a price (per unit): Total Costs of Production Per Unit + Desired Dollar Profit Per Unit.

Businesses can set different profit rates, for example 15% profit on supplies and materials, 20% profit on labour/time, and 25% profit on overhead. These more complicated approaches to pricing usually emerge in response to the special needs of a particular business.

If your research reveals that similar products or services are available on the market at a cost much lower than what you could offer, you may have to either adjust your profit margin, the return you expect, or decide to provide enough specialized service or selection that the market will pay the extra. Alternatively, you may be forced to conclude that you cannot afford to make this item or provide this service and look for something else to do.

NOTE: Remember to cost materials at the level it costs to replace them - NOT at original prices; include salaries as a business expense; include interest in your business cost calculations -- interest that could have been accrued had the money used in the company been invested elsewhere (i.e. a bank); make allowances for future refunds, servicing, bad debts, amortization of capital costs of equipment or machinery.

"Rules of Thumb" in Setting Prices Some types of businesses charge prices according to certain "rules of thumb": For example: price is always twice labour plus materials, or twice materials plus labour depending on which is higher; price is always materials and labour plus 20% for fixed costs, plus 25% for profits.

Calculating actual costs is the only proven way to make sure your prices cover your costs. Labour/time charges are to be covered partly in the costs of production and partly as a salary in the fixed/operating or overhead costs.

In summary, key points to consider in setting prices are: marketing strategy and your immediate goals competitors' prices, and the market market demand for the product and consumer buying trends need to cover costs and provide an adequate profit.

Step 2
Build a profile of your competitors

Ask yourself what products and services they offer. Do they overlap with yours? What customer needs and wants are they satisfying? What is their unique selling proposition? How do they position themselves? Are they the Savoy or a McDonald’s? Is their mind-set corner shop, high street franchise or old establishment? Are they exclusive and high-priced or a dime-a-dozen? Are they as passionate and knowledgeable as you? How do they market themselves? Where do they advertise? What sales channels do they use – retail, direct mail, Internet, wholesale? What is their sales literature like? How good are their employees? Should you be considering enticing them over to you? Are they growing, level pegging or declining? If so, why? Use the Internet to get hold of credit reports on them. Find out how many employees they have, and what they do.

Step 3
Develop a strategy

Develop a strategy through which you can stand out from the rest. Two effective strategies are:

Specialization, differentiation, segmentation, concentration

Specialization is your area of excellence or core business. Differentiation is your competitive advantage, i.e. the reason why customers buy the product or service from you. Segmentation involves identifying your customers or market niche. Concentration means focusing all the resources of the business, hitting your market niche with your competitive advantage in your area of excellence. Many of us start out believing that business is about selling rubbish products to idiots who do not really need or want them, but are still persuaded to buy them at prices they certainly cannot afford. Apparently, this is not the case. If we believe in the free enterprise market system, then we believe, and a great deal of evidence suggests, that in order to run a successful business we must concentrate all our forces, hitting our market segment with our competitive advantage in our area of excellence.

Specialization
Which product or service would you like to produce and sell? In which area of human activity would you like to improve the lives of other people? To which area of human improvement can you bring excitement and enthusiasm? What is your area of excellence? What is your core business? For which product or service are you prepared to be a product champion? What would you love to do to improve the lives of others for 16 hours each day, even if you received no financial reward? What is it that makes you feel valuable and worthwhile? Remember there is a strong relationship between high self-esteem and peak performance. The more you love doing something, the greater will be your success. All successful businesses specialize in their areas of excellence. Many unsuccessful people drift into areas where they do not have the excitement, enthusiasm, energy, knowledge, etc., to establish competitive advantage and find their market segment.

Step 4
Regular SWOT

Conduct a regular SWOT analysis of your competitors to ensure that you stay ahead.

What are your competitors'
Main Strengths

Main weaknesses - where are they vulnerable and how can you take advantage?

Which opportunities can you identify?

Does your competitor pose a threat to you, and how will you overcome it?

About the Author:

Learn more at http://www.my1stbusiness.com Ben Botes MSc. MBA, is an Entrepreneur, Speaker, Writer, Coach and academic. He is the founder of My1stBusiness.com, a web portal dedicated to 1st time business leaders and entrepreneurs. He is also the Co-founder of South African Business Hubs, Business support Hubs and incubators for the new breed of So Read more articles by: Ben Botes
Article Source: www.iSnare.com